SYDNEY/WELLINGTON: The Australian and New Zealand dollar paused near 2018 highs ahead of global risk events such as Brexit trade talks in Brussels, indecision over a US pandemic stimulus and a looming European Central Bank meeting. The Australian dollar was flat at $0.7411. It went as high as $0.7454 earlier this week, a level last seen in August 2018, led by a combination of factors including solid macroeconomic data recently and a broader US dollar sell-off.

The New Zealand dollar was last a shade weaker at $0.7038. It hit a 2-1/2 year top of $0.7104 last week. New Zealand government bonds rose a bit, sending yields about 2-2.5 basis points lower. Australian government bond futures were barely changed. Currency investors are closely watching a meeting between British Prime Minister Boris Johnson and European Commission president Ursula von der Leyen in Brussels to see whether there is any breakthrough in Brexit trade talks.

Traders are also tracking negotiations over US coronavirus aid after the Trump administration proposed a $916 billion package on Tuesday. US job openings data is due later on Wednesday, and on Thursday the main focus is on the ECB. Investors expect easing but are unsure what, if anything, the bank may do or say about a tearaway euro that has gained 8% this year.

Closer to home, a gauge of Australian consumer sentiment hit a 10-year high in a sign domestic activity will remain strong in the final quarter of 2020 after a stellar third-quarter. Nomura analyst Andrew Ticehurst expect the Aussie to hit $0.7800 over the next 12 months, ongoing trade tensions with China notwithstanding.